3 step proactive approach to get rid of credit card debt quickly

Cynthia Stewart
May 11, 2007
View Author Bio
Digg It Del.icio.us
Furl It Reddit
Google My Web

People treat credit card debt like a disease. They don't care about it until things get out of hand and considerably threaten their lives. How to eliminate the credit card debt as soon as possible? If this question is bothering you, read on. In this article we present a simple 3 step proactive approach to get rid of credit card debt.

Step 1: List and arrange

List all your credit cards in a table with their details. The details to be recorded are the outstanding balance, interest rates, minimum payments, and repayment dates. Arrange them in decreasing order of interest rates. Now you have a list with credit card that charges the most on its balances at the top. Move on to the next step.

Step 2. Set up a payment schedule

Add up all the minimum payments of credit cards. From your monthly budget allocate a money which is about double the total that comes after adding the minimum payment. Now, pay the minimum payments of all credit cards except the card with highest interest rate. For this credit card pay the remaining amount of money allocated for credit card payment. If bothered by the varying repayment dates, automate the repayment process using your bank account.

Step 3: Eliminate all debt one by one

Thus, you will end the highest interest rate debt first, now continue with the second highest rate card and so on. Each month you will require less amounts for credit card debt elimination as the debt reduces.

To prevent accumulation of credit card debt in future make sure not to indulge excessively. Keep a track of high interest rate credit cards, and transfer their balance to a low interest rates or 0% intro APR credit cards. Don't miss out on repayments and invite penalties. Try to pay cash for most of your purchases and stay within your budget.